FOB INCOTERMS (Free on Board)

FOB incoterms or “Free on Board” is a shipping exclusive Incoterm and states that the seller must load the goods on board a ship chosen by the buyer. Here the seller is responsible for the cost and risk until the point when the goods have been passed the ship’s rail.

FCA is similar to FOB; the only difference being the risk transfer point upon crossing the ship’s rails is not specifically mentioned.

SELLER’S OBLIGATIONS UNDER FOB

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transport in the country of origin
  • Customs at origin
  • Exit charge

BUYER’S OBLIGATIONS UNDER FOB

  • Payment of the goods
  • International freight
  • Insurance
  • Arrival expenditures
  • Customs on arrival
  • Inland transport at the destination country
  • Payment of fees

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